Block Inc. (NYSE:XYZ) shares rallied in Thursday's extended trading after the company released its fourth-quarter earnings report and announcing massive headcount reductions.
The Details: Block reported quarterly earnings of 65 cents per share, in line with the Street estimate, according to data from Benzinga Pro.
Quarterly revenue came in at $6.25 billion which missed the consensus estimate of $6.28 billion.
Block also announced massive 40%+ headcount reductions.
“Today we shared a difficult decision with our team. We’re reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation,” CEO Jack Dorsey said in a letter to shareholders.
“The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We’re already seeing it internally. A significantly smaller team, using the tools we’re building, can do more and do it better. And intelligence tool capabilities are compounding faster every week,” Dorsey added.
we're making @blocks smaller today. here's my note to the company.
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today we're making one of the hardest decisions in the history of our company: we're reducing our organization by nearly half, from over 10,000 people to just under 6,000. that means over 4,000 of you are…
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